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Key Takeaways
Bitcoin's non-empty wallet count has fallen by roughly 109,000 since October 16 as BTC slipped below $75,000.
Fewer funded addresses may signal retail capitulation, but wallet consolidation means the decline does not necessarily reflect investors leaving.
Addresses holding 1-100 BTC added a combined 14,207 BTC over two weeks, contrasting with continued US spot ETF withdrawals.
Bitcoin has lost roughly 109,000 non-empty wallets since mid-October, according to Santiment, as its retreat below $75,000 tests smaller investors' patience.
The analytics firm reported that funded wallets reached 59.99 million on Oct. 16 before declining by approximately 108,700.
Santiment interprets the contraction as a potential sign of retail capitulation, a pattern it says has preceded major recoveries. However, the bullish argument depends on prices stabilizing while discouraged holders continue exiting.
Other indicators paint a mixed picture: some larger Bitcoin holders are accumulating, while exchange-traded fund withdrawals and fragile demand continue to weigh on the market.
Santiment's figures imply that Bitcoin's non-empty wallet count has dropped to approximately 59.88 million, a decline of about 0.18% from the October reading.
That change requires careful interpretation. Blockchain addresses do not correspond directly to individual investors. One person can control multiple addresses, while an exchange can hold Bitcoin for many customers.
An address can also become empty when its owner consolidates funds elsewhere, without selling any Bitcoin. Consequently, the decline does not establish that 109,000 people abandoned the asset or that network adoption has reversed.
Santiment nevertheless views the trend as evidence of growing frustration among smaller holders during the downturn.
Separate Glassnode data underscores the distinction between funded addresses and activity. Its figures showed daily active addresses increased 1.8% to approximately 670,600, while entity-adjusted transfer volume stood near $5.7 billion.
The firm described heightened activity around the sell-off as repositioning.
Together, these readings suggest that fewer funded addresses can coexist with substantial network use.
While the overall wallet count contracts, some better-funded cohorts have increased their holdings.
In a later update, Santiment reported that addresses holding between 1 and 10 BTC added 10,076 BTC over two weeks. Those holding between 10 and 100 BTC accumulated another 4,131 BTC.
Combined, the groups added 14,207 BTC as Bitcoin fell toward $75,000. Santiment characterized this divergence between accumulation and fearful sentiment as potentially bullish, particularly if buying continues.
However, address size alone cannot establish an owner's identity, sophistication or investment horizon.
Meanwhile, Glassnode reported that US spot Bitcoin ETFs recorded withdrawals on four of five trading days during the preceding week.
Its analysis also found that spot-market selling outweighed buying and that realized losses exceeded profits.
That combination complicates the recovery narrative. Accumulation by selected holders can help absorb supply, but sustained selling elsewhere may overwhelm that demand.
Capitulation describes investors surrendering positions after prolonged losses or mounting fear. It can help exhaust selling pressure, but identifying it does not establish when prices will recover.
Santiment's proposed confirmation involves Bitcoin holding roughly $74,000 to $75,000 even as wallet numbers continue falling. Such a divergence would suggest that remaining buyers can absorb sales without another significant price breakdown.
The firm also reported exchange supply near 1.28 million BTC and identified a recovery toward $78,000 to $80,000 as further support for its bullish interpretation.
Lower tracked exchange balances, however, do not guarantee a shortage of sellers. Coins can return to trading platforms, and changes in custody arrangements can influence reserve metrics.
For now, the wallet decline offers evidence of changing holder behavior.
A stronger recovery case requires resilient prices, continued accumulation and improving demand, conditions that would turn retail exhaustion into something more durable.
